Mahathir's son says no to Maybank takeover

Maybank''s plans to take over PhileoAllied Bhd have been scuppered by one of PhileoAllied''s shareholders, Avenue Assets. There''s also more bad news for the Utama-AMMB merger.

Avenue Assets Bhd, a diversified conglomerate controlled by a son of Malaysian Prime Minister Mahathir Mohamad, rejected an offer last night to sell PhileoAllied Bhd to Malayan Banking Bhd Maybank in an all-share transaction. Maybank, MalaysiaÆs biggest banking group, offered to swap one new Maybank share for every six PhileoAllied shares, valuing the target bank at M$1.2 billion $315.8 million. That would have given PhileoAllied's shareholders a 3.3% stake in Maybank. The offer, which values PhileoAllied at 1.3 times shareholders' funds, was pitched roughly a third below market expectations, say analysts.

Avenue Assets said it was ôunable to supportö the merger scheme, according to statements from Maybank...

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